February 7, 2018

Duke Energy today outlined its proposal to pass along
savings from the new federal tax law to its North Carolina customers
in ways that will lower bills in the near term and help offset increases in the
future.

Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP)
offered the proposal in a filing with the North Carolina Utilities Commission
(NCUC) today. Duke Energy has maintained customers' rates significantly below
the national average for many decades while providing safe, reliable and
increasingly clean energy for North Carolinians.

"This is a unique opportunity that allows us to reduce
customer bills in the short term while also helping to offset future rate
increases," said David Fountain, Duke Energy's North Carolina president.

"With a balanced approach, our customers can benefit from a reduction in
the corporate income tax rate, while we continue to make smart investments on
behalf of our customers."

The company recommended several options that the NCUC could
select to provide customers with near-term benefits, while minimizing volatity
in customer bills.

Apply tax savings to offset a portion of the current rate
request pending before the NCUC.